Global Headquarter - Unit no 3 & 7, Shanti Nagar Industrial Estate,
Vakola, Santacruz East, Mumbai, Maharashtra- 400055
MSMEs are a critical engine of India’s economy. With increasing compliance expectations, higher penalties, and the transition to the four Labour Codes, MSME leaders need a structured, reliable, and scalable support system. Karma Global extends end-to-end HR and compliance services designed for practical implementation and sustainable growth.
The consolidation of 29 labour laws into four Labour Codes is reshaping wage definitions, statutory computations and workforce protections. MSMEs must implement changes with accuracy to avoid escalating compliance exposure.
The Micro, Small and Medium Enterprises (MSMEs) sector in India is an integral part of the country’s economy, contributing substantially to manufacturing and services GDP.
As on September 2025, there are 6.82 crore MSMEs registered on the Udyam Registration Portal and Udyam Assist Platform (UAP). The Ministry of Micro, Small and Medium Enterprises has allocated around Rs. 23,168 crores in the FY26 Union Budget.
MSMEs account for around 30 percent of Gross Domestic Product and employ over 110 million people. The manufacturing segment, including textiles and food processing, employs 31 percent of the MSME workforce, while trade and services sectors contribute 33 percent and 36 percent, respectively.
The Government has launched multiple support schemes including the Pradhan Mantri Mudra Yojana (PMMY) and the Raising and Accelerating MSME Performance (RAMP) Scheme, benefitting over 4 lakh micro, small and medium enterprises.
India is witnessing a significant transformation by moving away from older colonial-era labour law structures and adopting reforms that aim to protect workers while improving ease of doing business.
A pivotal change is the overhaul of the wage definition, which impacts pay structures, statutory deductions, long-term benefits, and several workforce safeguards, including provisions linked to working conditions.
MSMEs will need to implement these changes responsibly and with clarity. Ambiguities may exist in interpretation and transition, but compliance cannot be overlooked or ignored.
Employers and small businesses will be required to catch up on the implementation of the four Labour Codes, including recalculation of benefits such as gratuity, leave encashment, bonus, and classification of employees.
Setting up and running a business in India involves administrative, operational and litigation risks, apart from tax and statutory compliance. While procedures are being simplified, penalties have increased and enforcement is evolving, requiring MSMEs to stay systematically aligned.
Karma Global supports MSMEs with service collaboration, robust execution, and continuous adaptation to Labour Code requirements, including financial impact detailing, payroll reconfiguration, state-wise compliance mapping, workforce planning, and vendor agreement alignment for sustainable growth.
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